New owner of Procana project in Mozambique to be named this year

2 September 2011

Maputo, Mozambique, 2 Sept – The company that will take on the Procana project, to produce biofuel from sugar cane in the Massingir region or Mozambique’s Gaza province, is expected to be named by the end of the year, according to Mozambican newspaper Notícias.

The project, initially valued at US$510 million, was launched in 2008, but, in January 2010, was cancelled by the government due to non-fulfilment on the part of the proposers.

The Mozambican government announced the launch of a new international tender for this year, which is in the assessment phase, according to Hélio Neves, coordinator of the Biofuel Programme of the Centre for Promotion of Commercial agriculture (Cepagri), cited by Notícias.

Neves, who was speaking during a working meeting held in Maputo to present the results of the initiatives carried out by the various institutions involved in the biofuel production project in Mozambique, did not give further details about Procana but gave assurances that ethanol production from sugar cane in that region of Gaza was a continued focus of the government.

In Mozambique the mandatory mixing of biofuel with gasoline and diesel is due to come into force as of next year, and the regulation for this, which was approved at the beginning of this year requires a 10 percent proportion of ethanol for gasoline and 3 percent biodiesel for diesel. (macauhub)